Firm doubts RBM inflation target

Nico Asset Managers, an investment advisory firm, has doubted optimism by the Reserve Bank of Malawi (RBM) over the expected ease in inflation rate in the short to medium -term. But RBM argues that the  rate at which prices of goods and services change in an economy will remain within the single-digit lane this year…

TC to get tough  On auction system

Tobacco Commission (TC) says the auction system of selling tobacco will now be subjected to strict compliant issues just like the Integrated Production System (IPS), also known as contract farming. TC chief executive officer Kayisi Sadala said in an interview yesterday that one of the critical elements on tobacco production is traceability demanded by cigarette…

Flanders pumps K3.3bn in agriculture sector

Flemish and Malawi governments yesterday signed a financing agreement worth 4.5 million euros (about K3.3 billion) to contribute towards improving agriculture productivity. The resources will finance a five-year project from June 2019 to May 2023 whose main interventions aim to promote land tenure security through systematic rural land registration, among others. Speaking during the signing…

Malawi to review  Trade agreements

Ministry of Industry, Trade and Tourism plans to review the country’s bilateral, regional and multilateral agreements to ascertain whether they are beneficial or not. The ministry’s spokesperson Mayeso Msokera confirmed about the exercise in an interview on Monday. This follows a hint by Minister of Finance, Economic Planning and Development Joseph Mwanamvekha about such as…

‘Border shutdown to halt economy’

Economics Association of Malawi (Ecama) and a Chancellor College Professor on Tuesday warned of severe economic consequences if airports and border posts are closed as planned by the Human Rights Defenders Coalition (HRDC). HRDC announced at a news conference in Lilongwe on Tuesday that in their relentless quest to force Malawi Electoral Commission (MEC) chairperson…

Middle income status possible—commission

National Planning Commission (NPC) says Malawi is poised to attain a middle income status in the next 15 years if it manages population growth. In an interview on Tuesday, NPC director general Thomas Chataghalala Munthali, commenting on the significance of containing the current population growth rate, said much as there is no one figure that…

Government forecasts 7% GDP growth in 2020

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha says Treasury projects real gross domestic product (GDP) growth of seven percent next year on accounnt of planned infrastructure development and continued focus on growth potential sectors. The ambitious projection is three percentage points above a growth rate of four percent achieved in 2018 and two…

Expert decries low non-tax revenue

The declining trend in non-tax revenue is a reflection that the country’s economic landscape remains volatile, a Blantyre-based tax analyst has said. Tax analyst Emmanuel Kaluluma, who is senior tax consultant at EK Tax Consultants, said this in reaction to an analysis by the World Bank report which shows that non-tax revenue as a percentage…

Ecama faults government spending on energy

Economics Association of Malawi (Ecama) has described Treasury’s spending in the energy sector as “too little and insignificant”, a situation that is perpetuating energy supply challenges. Ecama’s analysis presented at the first pre-budget consultation meeting for the 2019/20 National Budget in Lilongwe on Tuesday shows that Treasury’s budget allocation as a percentage of gross domestic…

Budget to enhance fiscal prudence

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha yesterday hinted that the 2019/20 National Budget will hinge on spurring both domestic and foreign investments while strengthening prudent fiscal management. Speaking during the first pre-budget consultation meeting  for the 2019/20 National Budget in Lilongwe, the minister also said the next budget, which is expected to…

Groups lobby for VAT removal on bread, utilities

Malawi Economic Justice Network (Mejn) and Economics Association of Malawi (Ecama) have asked government to remove value-added tax (VAT) on piped water, bread and electricity. Mejn executive director Grace Kumchulesi and Ecama president Chikumbutso Kalilombe made the lobby in their respective input to the 2019/20 National Budget during a pre-budget consultation meeting at Bingu International…

RBM warns treasury on rising public debt

R eserve Bank of Malawi (RBM) Governor Dalitso Kabambe has advised Treasury to rein in on both domestic and external borrowing, warning that there is insufficient room for further borrowing. The governor’s pronouncement comes on the back of figures showing  public debt at $4.3 billion (K3.2 trillion) or 68 percent of gross domestic product (GDP)…

Minister of Finance  hints at Fisp reforms

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha says government welcomes suggestions on how to reform the multi-billion kwacha Farm Input Subsidy Programme (Fisp) in view of challenges affecting the social protection programme. The minister said this on Tuesday in Lilongwe on the sidelines of a signing ceremony of the release of the disaster…

Minister pledges economic stability

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha says his immediate task will be to sustain the stability of the economy while laying a strong foundation for high economic growth rates. In an interview on Friday in Lilongwe after presenting the K511.3 billion four-month provisional budget, the minister said under his watch, he envisages…

MPs frown at budget

Describe K511bn provisional budget unrealistic Some legislators on Friday challenged new Minister of Finance, Economic Planning and Development Joseph Mwanamvekha to justify what they described as unrealistic assumptions in the K511.3 billion provisional budget he presented. But the House later approved the budget. Among other things, the members of Parliament (MPs) questioned the minister’s assumptions…

Export strategy ambitious, poorly designed—Report

Consultants have described the five-year National Export Strategy (NES), implemented between 2012 and 2018, as “too ambitious and over-designed”. The consultants, CITC from Mauritius, released the findings during a stakeholders’ validation workshop in Lilongwe on Monday. Their review was done between November 26 2018 and June 10 this year. Presenting the findings, Dev Chamroo, one…